Nextdoor (NYSE:NXDR) Shares Gap Up After Strong Earnings

Key Points

• Shares gapped up after Nextdoor reported Q1 EPS of ($0.03) vs. consensus ($0.05) and revenue of $61.67 million, opening at $1.80 from $1.63 and last trading around $1.8870 on heavy volume.
• The company remains unprofitable with a negative net margin of 21.04% and negative return on equity of 11.48%, and a market cap of about $738.6 million.
• Analysts have a consensus rating of "Reduce" with a $2.10 target, even as several institutional investors (including Sumitomo Mitsui, Amova, ARK) established sizable new positions; institutions now own 35.66% of the stock.

Nextdoor Holdings, Inc. (NYSE:NXDR - Get Free Report) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $1.63, but opened at $1.80. Nextdoor shares last traded at $1.8870, with a volume of 2,020,189 shares changing hands.

The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.02. The company had revenue of $61.67 million for the quarter. Nextdoor had a negative net margin of 21.04% and a negative return on equity of 11.48%.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on NXDR. Wall Street Zen cut shares of Nextdoor from a "buy" rating to a "hold" rating in a report on Sunday, March 1st. B. Riley Financial reiterated a "neutral" rating on shares of Nextdoor in a research note on Thursday, February 19th. Citigroup decreased their price target on shares of Nextdoor from $2.20 to $2.10 and set a "neutral" rating on the stock in a research note on Friday, February 20th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Nextdoor in a research note on Tuesday, April 14th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $2.10.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Sumitomo Mitsui Trust Group Inc. acquired a new position in shares of Nextdoor during the 4th quarter worth approximately $24,990,000. Amova Asset Management Americas Inc. acquired a new stake in shares of Nextdoor during the 4th quarter worth approximately $24,871,000. Ieq Capital LLC acquired a new stake in shares of Nextdoor during the 4th quarter worth approximately $19,986,000. ARK Investment Management LLC acquired a new stake in shares of Nextdoor during the 4th quarter worth approximately $16,335,000. Finally, Geode Capital Management LLC acquired a new stake in shares of Nextdoor during the 4th quarter worth approximately $11,083,000. Institutional investors and hedge funds own 35.66% of the company's stock.

Nextdoor Stock Performance

The stock has a market cap of $738.63 million, a price-to-earnings ratio of -13.68 and a beta of 1.29. The company has a 50-day moving average of $1.53.

About Nextdoor

Nextdoor Holdings, Inc NYSE: NXDR operates Nextdoor, a private social network designed to connect neighbors and local communities. Founded by Nirav Tolia, Sarah Leary, Prakash Janakiraman and David Wiesen, the company is headquartered in San Francisco and provides an app and web platform where residents can share news, recommendations, safety information, items for sale, and local event notices. The platform is built around verified neighborhood groups and identity-confirmation processes intended to foster trust and relevant local conversations.

Nextdoor’s core products center on the consumer-facing Nextdoor app and web experience, supplemented by tools and services for local businesses, public agencies, and advertisers.

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